Medical diagnostics platform 5C Network raises Rs 25.5Cr led by Redwood India Healthcare Fund

Bengaluru-based 5C Network, a medical diagnostics platform, has raised Rs 25.5 crore (approximately $3 million) in a new funding round led by Redwood India Healthcare Fund, Entrackr reported. 

The board of 5C Network authorized the issuance of 2,72,241 Compulsorily Convertible Preference Shares (CCSPS) at a price of Rs 936.67 per share, as revealed in documents from the Registrar of Companies. This strategic move comes after a hiatus of over 17 months since their last fundraise, showcasing a rejuvenated interest in the platform's growth potential.

At what valuation? 

Post this round, 5C Network's valuation is estimated to hover around $30 million, as per TheKredible, a startup data intelligence platform. Founded in 2016 by Kalyan Sivasailam and Syed Sabbir Ahmed, The startup has raised over Rs 80 crore in funding from investors, including notable backers like Tata 1mg and Celesta Capital. 

What does 5C Network do?

5C Network stands at the forefront of revolutionizing medical diagnostics in India. It provides a platform for the creation, storage, and analysis of radiology images, thereby enhancing the efficiency of radiology infrastructure across hospitals. This not only streamlines diagnostic processes but also opens up access to specialized radiologists, ensuring timely and accurate medical diagnoses.

How well is 5C Network performing financially?

Despite its innovative solutions, 5C Network has faced hurdles in maintaining growth, as evidenced by a 20% decrease in collections to Rs 18.75 crore in the fiscal year ending March 2023. The period also saw the company incurring a loss of Rs 19.47 crore.